John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. Merchandise costing $2,800 was sold for $5,200 in cash. Required: Prepare the necessary journal entries to record these transactions. Record the merchandise purchased on account for $5,000. Record the payment of freight charges for $300. Record the return of merchandise purchased on account costing $600. Record the sale of merchandise for $5,200 in cash. Record the cost of goods sold for $2,800.
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. Merchandise costing $2,800 was sold for $5,200 in cash. Required: Prepare the necessary journal entries to record these transactions. Record the merchandise purchased on account for $5,000. Record the payment of freight charges for $300. Record the return of merchandise purchased on account costing $600. Record the sale of merchandise for $5,200 in cash. Record the cost of goods sold for $2,800.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:
- John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.
- John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier.
- Merchandise costing $2,800 was sold for $5,200 in cash.
Required:
Prepare the necessary
- Record the merchandise purchased on account for $5,000.
- Record the payment of freight charges for $300.
- Record the return of merchandise purchased on account costing $600.
- Record the sale of merchandise for $5,200 in cash.
-
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